Best buys: investment guide

This fund has been languishing in recent months - so why buy it? Because such short-term performance is not that relevant, but management style and philosophy are.

Although equities are the main focus of this fund, bonds and cash have been used extensively to enforce Ruffer's core philosophy that preservation of capital is paramount. Reflecting recent problems in stock markets, the fund is a staggering 70% in cash, although this is now at 40%.

If you are looking for an aggressive approach to asset allocation and truly active management, don't let the recent statistics deter you - this is a fund worth backing over the long term.

Your personal data, lifestyle objectives and risk profile are fed into the program and, a couple of clicks later, out comes the recommended spread between the main asset classes - equities, bonds, property and cash. They may even recommend the actual funds for investment. Beware, on two counts. The software won't factor in the current market conditions and often the funds recommended are chosen from a restricted list of collectives.

If your adviser is not addressing these issues, preferring to slavishly follow the "investment by numbers" approach, you have to question where value is being added by taking advice.

Your guide to Isas

1. What is an Isa?

It is a tax-free individual savings account. It's not an investment in itself but acts as a tax-free "wrapper" around a savings vehicle. There are three main options you can invest your money in:

Cash: You can put an Isa wrapper around a bank or building society deposit account, a cash unit trust and any National Savings products (except savings certificates and premium bonds).

Nearly all funds (which are essentially investments in stocks and shares) can be purchased to go into an Isa.

Life insurance: This is offered by a limited number of companies. The life product inside the Isa wrapper is intended for savings rather than insurance. The wrapper will cover a range of unit-linked and with-profits savings options. Most providers favour the with-profits approach for cautious investors who may wish to gain exposure to the stock market with limited risk.

2. What's the difference between a maxi and mini Isa?

The maxi Isa: A maxi Isa is offered as a single package by a single provider. You can invest up to £3,000 in cash, up to £1,000 in life insurance and the balance in stocks and shares. You can invest the entire allowance in the stocks and shares component.

The mini Isa: You can choose a different company for each of the options, treating each as a separate plan. You can invest up to £3,000 in cash, up to £1,000 in life insurance and up to £3,000 in stocks and shares.

3. Can I have both types?

Not in the same tax year. If you want to put more than £3,000 into stocks and shares, choose a maxi Isa. If you want different components with different managers, choose a mini Isa.

4. Who can invest?

Anyone over 18 who is a UK resident or a Crown employee working overseas and treated as a resident. Anyone aged 16 or over can open a cash mini Isa or the cash component of a maxi Isa.

5. Can I take my money out at any time?

Yes, subject to the terms of your Isa. Once you have taken the money out, you cannot replace it.

6. Can I move my Isa from one manager to another?

Yes. You can switch to a different manager, but it must be the same type, such as cash or shares.

On the net

Whether you're a first-time investor or practiced at dealing in stocks and shares, Guardian Unlimited's Money Isas and investment section has the tools and tips to help you.

A live share price feed from Reuters means you can keep up to date with your investments at the click of a mouse whenever you choose, while calculators will help you work out how much your investment might be worth in the future depending on different financial data.

Factsheets, features and daily updated news stories will keep you on top of the world of investing, helping you make the most of your money. Go to guardian.co. uk/money/investments

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